STAND. COM. REP. NO. 188-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2360

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Labor, to which was referred H.B. No. 2360 entitled:

"A BILL FOR AN ACT RELATING TO PAID FAMILY LEAVE,"

begs leave to report as follows:

The purpose of this measure is to require the Department of Labor and Industrial Relations to:

(1) By January 1, 2029, establish a family and medical leave insurance program and begin collecting payroll contributions to finance the program; and

(2) By January 1, 2030, begin receiving claims and paying benefits.

Your Committee received testimony in support of this measure from the Department of Human Resources Development; Office of Wellness and Resilience; Hawaii State Commission on the Status of Women; one member of the Hawaiʻi County Council; Pride at Work Hawaiʻi; United Public Workers, AFSCME Local 464, AFL-CIO; Hawaiʻi Public Health Institute; Hawaiʻi State Teachers Association; AAUW of Hawaii; Hawaii Family Caregiver Coalition; Hawaiʻi Alliance of Nonprofit Organizations; Wainiha Country Market; ACLU of Hawaiʻi; AARP Hawaii; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Chamber of Sustainable Commerce; Hawaiʻi Children's Action Network Speaks!; Hawaii State Democratic Women's Caucus; Hawaiʻi State Coalition Against Domestic Violence; and numerous individuals. Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations; Society of Human Resource Management Hawaii; Hawaii Energy Marketers Association; Grassroot Institute of Hawaii; NFIB Hawaii Chapter; Hawaii Transportation Association; Maui Chamber of Commerce; and two individuals. Your Committee received comments on this measure from the Department of Taxation; University of Hawaii Professional Assembly; and one individual.

Your Committee finds that the lack of a statewide paid family and medical leave system results in many workers being unable to take necessary time off for caregiving or personal medical needs without suffering financial hardship. This gap disproportionately affects low‑income workers, families without access to employer‑provided benefits, and individuals recovering from childbirth or serious illness who may be forced to return to work prematurely. Establishing a statewide paid family and medical leave program provides workers with wage replacement and job protections during qualifying leave, ensuring financial stability and healthier outcomes for Hawaii's workforce.

Your Committee has amended this measure by:

(1) Excluding paid family and medical leave insurance benefits from gross income, adjusted gross income, and taxable income for purposes of the state income tax;

(2) Reinstating the temporary disability insurance law;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2360, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2360, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

JACKSON D. SAYAMA, Chair